Last Update05 Aug 25Fair value Increased 19%
✅ Key Financial Highlights (Year Ended 31 May 2025 vs 31 May 2024)
Metric 2025 (₦’000) 2024 (₦’000) YoY Change
Revenue 212,634,336 152,249,309 +39.7%
Cost of Sales (154,930,174) (98,120,852) +57.9%
Gross Profit 57,704,163 54,128,457 +6.6%
Operating Profit/(Loss) (14,544,859) 6,108,171
Significant Decline Profit/(Loss) Before Tax (2,261,978) 2,010,062 -212.5%
Profit/(Loss) for the Year (5,753,248) 5,536,119 -203.9%
Total Comprehensive Income (5,753,248) 5,536,119 -203.9%
Earnings Per Share (EPS) (₦1) ₦5 -120%
✅ Q4 2025 vs Q4 2024 Snapshot
Metric Q4 2025 (₦’000) Q4 2024 (₦’000) YoY Change
Revenue 58,222,205 42,542,006 +36.9%
Gross Profit 16,120,775 15,549,046 +3.7%
Operating Profit/(Loss) (7,753,575) 4,992,182
Significant Decline Profit/(Loss) for the Quarter (5,753,248) 4,992,182 -215.2%
✅ Key Observations & Analysis
1. Revenue Growth vs Cost Pressure
- Revenue grew ~40% YoY, driven by pricing and possibly volume growth.
- Cost of sales surged 58%, outpacing revenue growth and compressing gross margin.
- Gross profit increased only 6.6% YoY, reflecting severe cost pressures (likely due to inflation, FX, and raw material costs).
2. Operating Profit Collapse
- From ₦6.1bn operating profit in 2024 to ₦14.5bn loss in 2025.
- Major contributors:
- Selling & distribution expenses: Increased from ₦13.2bn to ₦17.8bn.
- Administrative expenses: From ₦14.5bn to ₦17.2bn.
- FX losses: ₦1.9bn vs negligible last year.
- Indicates high OPEX burden and possible inefficiencies.
3. Net Loss Despite Revenue Growth
- PBT fell from ₦2bn profit to ₦2.3bn loss.
- Net result swung from ₦5.5bn profit to ₦5.7bn loss (negative EPS of ₦1).
- Indicates structural cost challenges, not just one-off issues.
4. No FX Gain Advantage
- In 2024, FX may have been neutral; in 2025, FX loss amplified cost issues.
✅ Strengths
✔ Strong revenue growth (+40%).
✔ Resilient sales despite macroeconomic challenges.
❌ Weaknesses / Risks
✖ Significant margin erosion due to cost inflation and FX losses.
✖ Negative operating leverage – high fixed costs magnified losses.
✖ Earnings volatility raises dividend sustainability concerns.
✖ Heavy dependence on imported raw materials (FX exposure).
✅ Key Financial Highlights (Year Ended 31 May 2025 vs 31 May 2024)
Metric 2025 (₦’000) 2024 (₦’000) YoY Change
Revenue 212,634,336 152,249,309 +39.7%
Cost of Sales (154,930,174) (98,120,852) +57.9%
Gross Profit 57,704,163 54,128,457 +6.6%
Operating Profit/(Loss) (14,544,859) 6,108,171
Significant Decline Profit/(Loss) Before Tax (2,261,978) 2,010,062 -212.5%
Profit/(Loss) for the Year (5,753,248) 5,536,119 -203.9%
Total Comprehensive Income (5,753,248) 5,536,119 -203.9%
Earnings Per Share (EPS) (₦1) ₦5 -120%
✅ Q4 2025 vs Q4 2024 Snapshot
Metric Q4 2025 (₦’000) Q4 2024 (₦’000) YoY Change
Revenue 58,222,205 42,542,006 +36.9%
Gross Profit 16,120,775 15,549,046 +3.7%
Operating Profit/(Loss) (7,753,575) 4,992,182
Significant Decline Profit/(Loss) for the Quarter (5,753,248) 4,992,182 -215.2%
✅ Key Observations & Analysis
1. Revenue Growth vs Cost Pressure
- Revenue grew ~40% YoY, driven by pricing and possibly volume growth.
- Cost of sales surged 58%, outpacing revenue growth and compressing gross margin.
- Gross profit increased only 6.6% YoY, reflecting severe cost pressures (likely due to inflation, FX, and raw material costs).
2. Operating Profit Collapse
- From ₦6.1bn operating profit in 2024 to ₦14.5bn loss in 2025.
- Major contributors:
- Selling & distribution expenses: Increased from ₦13.2bn to ₦17.8bn.
- Administrative expenses: From ₦14.5bn to ₦17.2bn.
- FX losses: ₦1.9bn vs negligible last year.
- Indicates high OPEX burden and possible inefficiencies.
3. Net Loss Despite Revenue Growth
- PBT fell from ₦2bn profit to ₦2.3bn loss.
- Net result swung from ₦5.5bn profit to ₦5.7bn loss (negative EPS of ₦1).
- Indicates structural cost challenges, not just one-off issues.
4. No FX Gain Advantage
- In 2024, FX may have been neutral; in 2025, FX loss amplified cost issues.
✅ Strengths
✔ Strong revenue growth (+40%).
✔ Resilient sales despite macroeconomic challenges.
❌ Weaknesses / Risks
✖ Significant margin erosion due to cost inflation and FX losses.
✖ Negative operating leverage – high fixed costs magnified losses.
✖ Earnings volatility raises dividend sustainability concerns.
✖ Heavy dependence on imported raw materials (FX exposure).
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